TKG Advisors LLC Sells 7,052 Shares of Packaging Corporation of America $PKG

Key Points

• TKG Advisors LLC cut its Packaging Corporation of America stake by 55.9% in the first quarter, selling 7,052 shares and leaving it with 5,564 shares worth about $1.18 million.
• The company reported better-than-expected quarterly earnings of $2.40 per share, though revenue came in slightly below estimates at $2.37 billion. Revenue still rose 10.6% year over year.
• Packaging Corporation of America raised its quarterly dividend to $1.50 per share from $1.25, implying a 2.5% yield and a $6.00 annualized payout.

TKG Advisors LLC reduced its stake in Packaging Corporation of America (NYSE:PKG - Free Report) by 55.9% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 5,564 shares of the industrial products company's stock after selling 7,052 shares during the quarter. TKG Advisors LLC's holdings in Packaging Corporation of America were worth $1,181,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of the stock. GRIMES & Co WEALTH MANAGEMENT LLC bought a new position in shares of Packaging Corporation of America during the fourth quarter worth $4,664,000. PNC Financial Services Group Inc. increased its holdings in Packaging Corporation of America by 10.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 68,314 shares of the industrial products company's stock valued at $14,088,000 after acquiring an additional 6,257 shares during the last quarter. First Horizon Corp lifted its stake in Packaging Corporation of America by 74,572.9% in the 4th quarter. First Horizon Corp now owns 35,843 shares of the industrial products company's stock worth $7,392,000 after purchasing an additional 35,795 shares in the last quarter. Adams Natural Resources Fund Inc. boosted its holdings in shares of Packaging Corporation of America by 71.6% during the 1st quarter. Adams Natural Resources Fund Inc. now owns 12,700 shares of the industrial products company's stock valued at $2,695,000 after purchasing an additional 5,300 shares during the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in shares of Packaging Corporation of America by 29.2% during the 4th quarter. Victory Capital Management Inc. now owns 2,309,412 shares of the industrial products company's stock valued at $476,270,000 after purchasing an additional 521,352 shares during the last quarter. Institutional investors own 89.78% of the company's stock.

Insider Transactions at Packaging Corporation of America

In other Packaging Corporation of America news, CEO Mark W. Kowlzan sold 9,266 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $217.08, for a total transaction of $2,011,463.28. Following the completion of the transaction, the chief executive officer owned 473,610 shares in the company, valued at $102,811,258.80. The trade was a 1.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.60% of the stock is currently owned by insiders.

Packaging Corporation of America Stock Down 0.1%

Shares of PKG opened at $238.05 on Thursday. The company has a quick ratio of 1.88, a current ratio of 3.07 and a debt-to-equity ratio of 0.87. The business has a fifty day moving average of $222.61 and a 200 day moving average of $219.76. The company has a market cap of $21.21 billion, a PE ratio of 28.96, a P/E/G ratio of 2.23 and a beta of 0.80. Packaging Corporation of America has a 52-week low of $189.03 and a 52-week high of $249.51.

Packaging Corporation of America (NYSE:PKG - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share for the quarter, beating the consensus estimate of $2.17 by $0.23. The business had revenue of $2.37 billion for the quarter, compared to the consensus estimate of $2.45 billion. Packaging Corporation of America had a net margin of 8.04% and a return on equity of 19.27%. The business's revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.31 earnings per share. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. On average, sell-side analysts expect that Packaging Corporation of America will post 10.45 EPS for the current year.

Packaging Corporation of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be paid a $1.50 dividend. The ex-dividend date of this dividend is Monday, June 15th. This is an increase from Packaging Corporation of America's previous quarterly dividend of $1.25. This represents a $6.00 annualized dividend and a yield of 2.5%. Packaging Corporation of America's payout ratio is 72.99%.

Analyst Ratings Changes

Several brokerages have recently issued reports on PKG. Wells Fargo & Company reduced their target price on Packaging Corporation of America from $234.00 to $226.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Weiss Ratings cut Packaging Corporation of America from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, May 26th. Truist Financial reaffirmed a "buy" rating and issued a $258.00 price objective (down from $260.00) on shares of Packaging Corporation of America in a research note on Monday, April 27th. UBS Group upgraded Packaging Corporation of America from a "neutral" rating to a "buy" rating and increased their target price for the company from $232.00 to $248.00 in a research report on Wednesday, May 20th. Finally, Citigroup cut their target price on shares of Packaging Corporation of America from $227.00 to $217.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Packaging Corporation of America currently has a consensus rating of "Moderate Buy" and an average target price of $241.83.

About Packaging Corporation of America

Packaging Corporation of America NYSE: PKG is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.

Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.

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